"Meetings between president Mahmud Abbas and Prime Minister Ismail Haniya, including some which took place today, have been productive and positive," Nabil Abu Rudeina said.

"We expect to announce a national unity government in the coming 10 days."

Abbas has been meeting with Hamas leaders in Gaza since Wednesday in the latest round of talks aimed at forging a unity government.

Hamas heads the current cabinet since its landslide election win in January but has seen crippling aid cuts to the already cash-strapped Palestinian Authority over its refusal to recognise Israel or renounce violence.

Government spokesman Ghazi Hamad said "we will announce the creation of national union government as soon as possible," adding that talks with Abbas have been "serious."

The leader of the Hamas faction in parliament, Khalil al-Haya, nevertheless denied that a union government could be announced within 10 day, saying the negotiations "were still at an early stage."